eSports and gaming tech player Emerge (ASX:EM1) has just picked up Mobimedia, a profitable telco value-added service (VAS) business, for A$650k. 

Mobimedia generates Mobile Network Operator (MNO) partnership revenue in Solomon Islands, Tonga, Papua New Guinea and American Samoa through delivery of digital content.

Emerge Gaming (ASX:EM1) will acquire mobile games, SMS games and music streaming app mJams music content as well as mobile billing and media marketing platform technology assets.

The company says the deal expands its footprint into new jurisdictions outside of South Africa and provides the opportunity to offer existing social gaming and game streaming products to these Indian Ocean MNO partners.

New subsidiary and partnership opportunities

Subject to the successful closing of the transaction, the current CEO of Mobimedia, Todd Emanuelli, will be appointed as the CEO of a new subsidiary, StreamPlay Studio Pacific Pty Ltd.

“This deal diversifies our offering outside of our primary MTN relationship and outside Africa and brings in an entirely new management and operations team with capability and expertise that are Australian based,” Chairman Bert Mondello said.

“Crucially, this new team, led by Todd, is incentivised to deliver new partnerships, and grow the company’s offering sustainability and profitability.

“We also expect to see significant improvements in revenue and profitability from synergies once the Emerge tech stack is introduced and incorporated into existing partner relationships.”

New jurisdictions and revenue streams

The company has a strongly established partnership with MTN South Africa with products MTN Arena (competitive social gaming platform) and MTN Arena 5G (game streaming platform) currently in operation.

The results of the MTN Arena platform in South Africa acquiring 1.3 million subscribers since launch has provided the company with the opportunity for further extrapolation of this commercial model with offerings to the remaining countries where MTN services more than 240 million subscribers.

Mondello said they expect to leverage Todd’s expertise and guidance “in enhancing our partnership with MTN and other MNOs Emerge have been targeting.”

Notably, the new VAS business has partnerships with:

  • Telikom Limited (Papua New Guinea);
  • Bluesky Communications (American Samoa);
  • Tonga Communications Corporation (Tonga); and
  • Solomons Islands Telekom (Solomon Islands),

The VAS business also creates several new revenue streams which are complementary to Emerge’s existing gaming and streaming technology – and has the potential to be introduced to countries where the MTN Africa Group operates.

 

 

 

This article was developed in collaboration with Emerge Gaming Limited, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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